Fast Food Strike for Minimum Wage Increase

Conflict Paper Outline

Conflict: Fast Food Strike for Minimum Wage Increases

 

Intro:

v  What is minimum wage?

• Clearly define minimum wage

v  Background info on minimum wage

• Thoroughly digest the beginning of set wages
• How much, when, who
• The gradual increase of wage
• The end of wage increase

Body Paragraph(s) 1:

v  Who’s suffering on low wages now?

• Give list of corporations that start off with low wages

v  Introduce Conflict

• Fast food Strike for minimum wage increases
• What they (employees) are fighting for?
• What they (owners) are fighting against?

Body Paragraph(s) 2: Employee Claim

v  What they (employees) are fighting for?

• Higher pay (atleast $15/hr)
• Right to unionize

v  Why they are fighting?

• Hard to maintain and provide on low pay
• Have to care for families
• Living paycheck to paycheck

v  Who are they?

• College dropouts
• Students with some college education
• High school graduates
• Teenagers
• Adults 25+

Body Paragraph(s) 3: Owner Claim

v  What they (owners) are fighting against?

• $15/hr is unfeasible

v  Why they are against?

• Unfeasible
• Unfeasible wage increase means huge consumer price increase
• Less workers would be needed
• Harder to give equal hours

Body Paragraph(s) 4: Bigger Conflict

The bigger conflict is that the government is not keeping the wage cohesive with the inflation of the cost of living. Even though the government took care of major unemployment issues, people are still struggling horrendously while employed. But the government is afraid that increasing wage will influence another recession, more detrimental than the one the government is still recovering from.

Conclusion:

v  Will there be a compromise?

• President Obama is trying to get congress to pass on increasing wage to $9/hr
• Increase in wage is expected to come soon

v  My Claim: Bending a little can eventually benefit a lot. The employees are asking for a rather larger amount, but $9 maybe $10 is more than feasible for the huge fast food franchises. Increasing minimum wage would have to come eventually, so $9/hr is not a wage that will put the government or fast food franchises in any major danger of failure.

v  Closing statements

blog post 7: fast food strike for minimum wage increase

What was the triggering event of the conflict?

                On February, August 25, 2013, President Obama gave state of the union address. He stated, “Tonight, let’s declare that in the wealthiest nation on Earth, no one who works full-time should have to live in poverty, and raise the federal minimum wage to $9.00 an hour” (Obama’s state of the union address, 2013, pg. 6, para. 6). This motion to increase wage had employees more than ecstatic and consequently caused strikes nation-wide.

On Thursday, August 25, 2013, thousands of employees of popular fast food chains organized the largest strike to hit the fast food industry. Employees in over 50 cities protested for higher wage and the right to unionize. Obama’s address was the seed, and the strikes were the bloomed flower.

Employees know that these fast food industries would refuse to be put out of business, so if the owner’s will not bend a lot, they will at least bend a little to keep their employees and hire future employees. PolicyMic, stated that Hostess didn’t go out of business because of poor dietary, but behind their foreclosure was a protest from their employees. Resistance can either result a good consequence or a bad one.

 

Fossett, K. (2012). NYC fast food workers strike, showing the cost of neglecting minimum wage. Politics. Retrieved from: http://www.policymic.com/articles/19783/nyc-fast-food-workers-strike-showing-the-cost-of-neglecting-minimum-wage

 

Obama state of the union address. (2013). Retrieved from: http://www.nytimes.com/2013/02/13/us/politics/obamas-2013-state-of-the-union-address.html?pagewanted=6&_r=1

Blog post 6: Fast Food Strike for Minimum Wage Increase

What do you claim was the direct cause of your conflict?

                The government stopped keeping up with the inflation of minimum wage in 2007, the last year the wage was increased. Minimum wage has been stuck at $7.25 since 2007 and does not correlate with the rising cost of living. As said in PolicyMic, minimum wage would be at $10.55 if kept up with inflation.

Obama’s 2008 pledge to raise minimum wage by $2.50 by 2011, was not kept as a priority. Because the rise of wage stayed quiet for many years, business owners stayed mum about raising wage. But, low class workers refused to keep working 40+ hours a week for low wages.

The issue is larger than just the fight for higher wages. Business owners are in fear of foreclosing their businesses and economists fear a much more crippling recession. An even worse recession than the one we’re still recovery from will only make the economy weaker. A weak economy is a vulnerable and hungry economy. The will cause a global conflict. “The premise that considering employees’ needs is damaging in a recovering economy demands a critical re-evaluation” (Fossett, 2012, para. 11). Will there be a compromise between employees vs. economy?

Fossett, K. (2012). NYC fast food workers strike, showing the cost of neglecting minimum wage. Politics. Retrieved from: http://www.policymic.com/articles/19783/nyc-fast-food-workers-strike-showing-the-cost-of-neglecting-minimum-wage

Annotated Bibliography: Fast Food Strike for Minimum Wage Increase

Minimum Wages and Poverty: Will a $9.50 Federal Wage Really Help The Working Poor?

In this article, the author’s main arguments were that the recent minimum wage increase actually did decrease poverty from 15.6% to 11.3%. They also argued that increasing minimum wage will help some low-skill workers, but also be detrimental to some of the poor people. Millions of jobs will possibly be lost, a small percentage being the low class. It also made a point that some of the poor still aren’t working. The article basically evaluated both pros and cons of the federal dilemma.

This article was very direct about the minimum wage increase issue and very relevant to my topic. It gave background information of minimum wage and actual numbers and percentages. It also was a accurate number of wage President Obama plans on increasing minimum wage to. The article was helpful because it gave me more than an opinion. It helped me understand the real effects of increasing minimum wage on both sides, proven by numbers, equations, and percentages.

Sabia, Joseph J. & Burkhauser, Richard V. (2010). Minimum Wages and Poverty: Will a $9.50 Federal Wage Really Help The Working Poor? Retrieved from: http://ehis.ebscohost.com.proxy-ub.researchport.umd.edu/eds/pdfviewer/pdfviewer?sid=386063b3-4f42-4902-8f1e-cad3ec47286d%40sessionmgr15&vid=6&hid=15

Economics and the Supreme Court: The Case of the Minimum Wage

This article also gives a judicial background of minimum wage. The author introduces the idea of laissez-faire and whether it was actually ever present. Laissez-faire is the idea that business owners should be able to run their businesses as they wish without government involvement. The author feels that once employee wage starts to become an economic issue they must get involved. The case was brought to the Supreme Court.

It’s evident why this article is important to my topic; again it gives more than people’s current opinion. The historical background information will make my argument about my conflict more credible and more persuasive. It helps me understand where the issue stems from and help me to establish the bigger conflict.

McKennal, Edward J. & Zannoni, Diane C.
(2011). Economics and the Supreme Court: The Case of the Minimum Wage. Connecticut College, Economics, 270 Mohegan Ave, New London, 06320 USA, and Trinity College, Economics,Hartford, USA. Retrieved from: http://ehis.ebscohost.com.proxy-ub.researchport.umd.edu/eds/pdfviewer/pdfviewer?sid=386063b3-4f42-4902-8f1e-cad3ec47286d%40sessionmgr15&vid=7&hid=15

Minimum-Wage Increases and Employment in Franchisee Fast-Food Restaurants

The article explained how increasing minimum wage would make franchisers’ have to increase cost to consumers and reduce profit margins. In contrast, it explains how increasing minimum wage will not negatively affect employment. It concludes that if minimum wage was to increase, it may negatively affect the progression of the business because of the factors that would be changed, but not employment and time distribution.

The article expresses the idea that increasing wage means increases prices for consumers. In many of the news articles and other sources I read on my topic, the franchisers also expressed this idea. The franchisers also felt increasing wage drastically in an already recessed environment, would not be feasible. The article seemed to be pro-low wages for happier and loyal consumers.

Wimmer S., Bradley. (1996). Minimum-wage increases and employment in franchisee fast-food restaurants. Federal Communications Commission, Washington, DC 20554. Retrieved from: http://ehis.ebscohost.com.proxy-ub.researchport.umd.edu/eds/pdfviewer/pdfviewer?sid=73ba1dd3-2242-497e-a472-219079adba9e%40sessionmgr111&vid=3&hid=115

Fast Food Workers Strike to Protest Low Wages at McDonald’s, Taco Bell, Other Chains

The author of this news article basically gives an overview of the conflict and who’s fighting. The author gives testimonies from strikers in major cities. It also states how major the strike was, being that it hasn’t been a strike that dynamic in years. Last but not least, the article states the demographics of fast food employees.

This article is helpful to me because it is a current direct overview of my conflict. Current information will help keep me argument about my conflict fresh. Having opinions and claims from both sides of the conflict also makes my argument stronger.

Sandoval, E., Paddock, B., & Mcshane, L. (2013). Fast-food workers strike to protest low wages at McDonald’s, Taco Bell, other chains. NY Daily News. Retrieved from http://www.nydailynews.com/new-york/fast-food-walkout-workers-u-s-protest-wages-article-1.1440232

Fast Food Workers Strike for Higher Pay

This article gives a short overview of my topic. It shows me current pictures of strikers and it states how widespread the strike went. The strike spread to 60 cities and many of the strikes too place at McDonald’s and other famous fast food chains. Strikers argued that they deserve $15/hr.

This article is helpful because is specifically tells me what the employees are fighting for. With the kind of topic I have, having opinions from both sides is not weak. The more current news article I research, the more up to date I’ll be on my topic.

Strauss, G. (2013). Fast-food workers strike for higher pay. USA Today. Retrieved from http://www.usatoday.com/story/news/nation/2013/08/29/fast-food-workers-strike-for-higher-pay-in-nearly-60-cities/2726815/

Exploring Themes

The article explained how increasing minimum wage would make franchisers’ have to increase cost to consumers and reduce profit margins. In contrast, it explains how increasing minimum wage will not negatively affect employment. It concludes that if minimum wage was to increase, it may negatively affect the progression of the business because of the factors that would be changed, but not employment and time distribution.

The article expresses the idea that increasing wage means increases prices for consumers. In many of the news articles and other sources I read on my topic, the franchisers also expressed this idea. The franchisers also felt increasing wage drastically in an already recessed environment, would not be feasible. The article seemed to be pro-low wages for happier and loyal consumers.

 

Wimmer S., Bradley. (1996). Minimum-wage increases and employment

in franchisee! fast-food restaurants. Federal Communications Commission, Washington, DC 20554

 

 

Primary Source– Fast Food Strike for Minimum Wage

http://graphics8.nytimes.com/images/2013/08/01/business/STRIKE/STRIKE-articleLarge-v2.jpg

 

This image shows a very miniscule portion of strikers, striking outside of one of the most popular fast food chains. The strikers are demanding for higher pay, at least $15/hr.

In many of the articles I have read, this picture has continued the idea that fast food workers’, in their eyes, are worth more than minimum wage. The argument is simple and apparent, the employees want more than minimum wage. The wage they’re receiving does not meet the demands of the cost of living. The employees believe that the very successful food chains have more than enough money to increase wages. And as you can see the strikers look like adults. Those adults may have families to raise or debts to pay, receiving minimum wage will not make life less stressful for them. They may even continue to struggle at $15/hr.

Fast food strike for minimum wage News Articles

Many of the news articles I’ve read on my conflict, has pretty much been the same. But these two articles tell of one of the biggest strikes to occur in years. The strike began in NYC where there was very angry fast food employees demanding for better pay to accommodate the continuously rising cost of living. The strike spread all the way to the once before pro Jim Crow, low wage pay, South.

NBC news talks about the strike being huge in 50 U.S. cities. Workers demanded $15/hr, while restaurant owners defending the wage saying it’s appropriate and reasonable. The article says that a lot of the minimum wage jobs go to adults that are supporting their families, rather than teenagers. “Only 16 percent of fast food industry jobs now go to teens, down from 25 percent a decade ago. More than 42 percent of restaurant and fast-food employees over the age of 25 have at least some college education, including 753,000 with a bachelor’s degree or higher, according to the U.S. Bureau of Labor Statistics.” In defense, the National Restaurant Association says that only 5% of workers earn minimum wage. McDonald’s defending them by stating, “McDonald’s aims to offer competitive pay and benefits to our employees. We provide training and professional development for all of those who wish to take advantage of those opportunities” Michael Saltsman, EPI’s researcher director, says that raising wages will mean raising prices, eventually losing customers and possibly having to automate the jobs, which men less entry level jobs.

NY daily news article was very similar. It also agrees that Thursday’s strike was one of the biggest nationwide, usually strikes occur in one city. An employee tells of both she and her husband struggling to make ends meet, the recently could afford to buy a kitchen table, they used to eat on the floor. Another employee Simon says, “We don’t think it’s too much to ask, we’re still going to struggle on $15 an hour.”  McDonald’s states that, “the raises “would potentially have a negative impact on employment and business growth in our restaurants, as well as value for our customers.”  The article ending stating that minimum wage was last raised in 2009, and that President Obama hopes to raise it to $9.

Both articles simply just state the opinions and views of both sides. The question that’s still in the air, is if $15/hr is too much to ask for?

Links:

Sandoval, E., Paddock, B., & Mcshane, L. (2013). Fast-food workers strike to protest low wages at McDonald’s, Taco Bell, other chains. NY Daily News. Retrieved from http://www.nydailynews.com/new-york/fast-food-walkout-workers-u-s-protest-wages-article-1.1440232

Cox, J. (2013). Fast food strike go super-sized in clash over wages. NBC News. Retrieved from http://www.nbcnews.com/business/fast-food-strikes-hit-cities-across-country-8C11028643

Should minimum wage be $15?

Fast food owners, corporal and private, make billions of dollars a year. The current rate for minimum wage is $7.25/hr, which is about $17,000 a year for a full-time worker. Crew members of big fast food industries’  have complained about the low pay. These fast food restaurants include, McDonald’s, Wendy’s, Burger King, Taco Bell, KFC and many more. The strikers cried for minimum wage increase to $15/hr, to accommodate their cost of living better. The workers also demand for their right to organize and to form unions. Many of the fast food workers are adults with some college education and have to support a family.

The corporal and private owners do not agree with such high demands. From USAtoday, “Industry observers and representatives say a $15/hr wage, which would boost annual salary to about $31,200, would likely force most restaurants to pass on higher cost to customers, crimping already tepid sales and forcing employers to cut workers” (Strauss,2013, para. 16). Owners argue that they already suffered from the recession and increasing pay more than 100% is not feasible.

So do fast food workers deserve more than minimum wage? Are owners of these $6 billion entity fast food companies being unfeasible?

Personally, $15/hr may be a stretch to demand for from fast food owners, but a pay of at least $10/hr seems feasible. We fast food workers work very hard and expend a lot of energy to do our job and do it well. A happy employee, makes a happy work place, a happy workplace makes a better business, good business means big bucks. Giving a little will have a greater outcome eventually.

Links:

Langfield, A. (2013). In tough economy, fast food workers grow old. NBC News. Retrieved from http://inplainsight.nbcnews.com/_news/2013/04/15/17719586-in-tough-economy-fast-food-workers-grow-old?lite

Strauss, G. (2013). Fast-food workers strike for higher pay. USA Today. Retrieved from http://www.usatoday.com/story/news/nation/2013/08/29/fast-food-workers-strike-for-higher-pay-in-nearly-60-cities/2726815/

Sreeja, V. N. (2013). Fast-food workers to stage nationwide strikes for $15/hour minimum wage , right to organize. International Business Times. Retrieved from http://www.ibtimes.com/fast-food-workers-stage-nationwide-strikes-15hour-minimum-wage-right-organize-1401469